“In the near term, many people will be unable to work for a period and others are adjusting their working arrangements,” the MPC said in a statement.

“Many consumer-facing companies are now required to cease operations for a time, while other businesses have also needed to cease or scale back their activities.

“Household spending on social activities and other delayable forms of consumption is likely to decline materially. In an environment of heightened uncertainty, businesses are likely to postpone investment decisions. Exports are likely to weaken.”

Pedestrians pass by The Bank of England building in London. (Kirsty Wigglesworth/AP)

Without support from the government and the Bank of England, the MPC said there could be “longer-term damage to the economy,” as businesses go bust and people lose their jobs. Half a million people have already applied for unemployment benefits in just the last nine days.

The MPC said it was too early to tell just how bad things would get for the UK but pointed to recent data suggesting we would see “a material contraction in GDP.”

The central bank has already announced a slew of new programmes aimed at stabilising markets and supporting the economy. These include an additional £200bn of asset purchases, targeted support for small businesses, and collaboration with the US Federal Reserve on ‘swap lines’, which allow the Bank of England easy access to dollar funding. The emergency actions are part of a coordinated package of support with the UK Treasury.

“The MPC will continue to monitor the situation closely and, consistent with its remit, stands ready to respond further as necessary to guard against an unwarranted tightening in financial conditions, and support the economy,” the committee said in Thursday’s statement.